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Introduction to chartering
Definition
Chartering refers to the hiring of a vessel and the
payment of freight
These agreements maybe verbal or written if written
they are called charter parties
Unit 1: Chartering
Definition
Charter party agreements are of varying types:
Voyage Charter
Time Charter
Bareboat Charter
Contract of Affreightment
Ship Pooling
Parcelling
Joint Venture
Unit 1: Chartering
Definition
The contracting parties are ship owners and the
charterers
Essential to the contract between a ship owner and a
charterer are:
- the description of the ship
- the trade route
- the time of a vessel’s employment
Unit 1: Chartering
A charterer may or may not own the cargo and
employes a (shipbroker) to find a ship to deliver the
cargo for a certain price (freight rate)
Freight rate for iron ore and coal is closely related to the
demand for steel
Unit 1: The Freight Market
cement,
Unit 1: The Freight Market
cement,
Unit 1: The Freight Market
bauxite/alumina
Unit 1: The Freight Rate
Coal
Similar to that of iron ore
Grain
Food use human/animal
Fuel
Bauxite/ Alumina
Major producers: Guinea, Australia, Brazil, Jamaica
& Suriname
Major importers: China, Asian Tigers, North America
& OECD
Unit 1: The Freight Market
Ship owners
Charterers
Brokers
Agents
Unit 1: Individuals &
Organizations in Chartering
Major Players in Chartering
Ship owner: entity or person who owns a ship for hire
Baltic Exchange
Marketing Reports
Done by the various organization or publishing
houses where trends in the various markets and
freight rates over a particular period are highlighted
in a comprehensive market report. Important markets
are usually highlighted.
Reports are done for vessels as well as commodities